Abstract
Now Kompan has a flexible production platform - modular product architecture, which is suitable for a large number of product variations . It enables the mixing of different components and creating different end-products, making the customization easier. A great advantage of this type of product architecture is not only the fact that it leads to reducing inventory costs, but it also gives a field for innovation. It is easily achieved, as the different components are not interdependent, so changes to one can be done without having to change the whole product. This is how the company constantly provides their customers with innovative solutions.
The modular architecture gives possibilities for outsourcing because the components are not dependent on each other. This is why outsourcing from different sub-suppliers around the world is an essential part of Kompan's supply strategy . Considering the new acquisitions not only in Denmark, but also in other markets, the supply network can be extended even more. Apart from the bigger variety of supplies it provides, it can also be vital in case of a supplier's failure to deliver – a substitute can easily be found.
